Bitcoin A Good Bet For Millennials, Says Bullish Strategist Tom Lee

Tom Lee, co-founder of the market strategy firm FundStrat Global Advisors and an outspoken bitcoin bull, sees bitcoin as a valid investment for young people.

Lee told CNBC’s “Squawk Box” Thursday that bitcoin makes a lot of sense as a store of value. One of the key advantages to bitcoin is that its value is not correlated to stocks, bonds or gold. Hence, Lee sees bitcoin as a good diversification.

He compared millennials’ acceptance of cryptocurrencies as an investment to that of adopting gold among previous generations and the baby boomers’ driving the 1990s stock market rally.

Bitcoin And Blockchain An Asset Class

The U.S. millennials are driving the adoption of the blockchain, bitcoin and digital businesses, making them a real asset class, Lee said.

Lee’s assessment is based on Metcalfe’s Law, a principle that states that the value of communications networks is proportional to the square number of the network’s users. Under Lee’s model, Fundstrat values bitcoin at the square number of bitcoin users plus transaction volume. He said that this model accounts for 94 percent of bitcoin’s year-to-date growth.

Bitcoin Investment Trust To Benefit

Lee earned a reputation both as a stock market bear and bitcoin bull. He has famously set a “conservative” 2022 bitcoin price target of $25,000, and he maintained that price target even during the market correction that was initiated by China’s recent ban on initial coin offerings and bitcoin exchanges.